Licence Appeal Tribunal
FILE: 9241/TIA
CASE NAME: 9241 v. Registrar, Travel Industry Act 2002
An Appeal from a Notice of Proposal by the Registrar, Travel Industry Act, 2002, S.O. 2002, c. 30, Sch. D – dated November 21, 2014 to Revoke Registration
KMT Bissness Inc. o/a Marlin Travel Branch 1083 Appellant
-and-
Registrar, Travel Industry Act, 2002 Respondent
CONSENT ORDER
Upon the application to the Tribunal by KMT Bissness Inc. o/a Marlin Travel Branch 1083, the Appellant, and the Registrar, under the Travel Industry Act, 2002 for issuance of a Consent Order of the Tribunal without a hearing pursuant to section 4.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22; and
Having reviewed the written settlement signed by the Appellant and the Registrar, Travel Industry Act, 2002 as to the disposition of these proceedings which is filed and attached hereto as Schedule “A”;
NOW THEREFORE, upon consent of the parties, this Tribunal orders that the proceedings in this matter are concluded and disposed of without a hearing on the basis of the terms set out in the said Schedule “A”, which are incorporated into and made part of this Order.
LICENCE APPEAL TRIBUNAL
Gary Yee, Associate Chair
Released: March 30, 2015
SCHEDULE "A"
Licence Appeal Tribunal
KMT BISSNESS INC. o/a MARLIN TRAVEL BRANCH 1083 Applicant
AND
REGISTRAR, TRAVEL INDUSTRY ACT, 2002 Respondent
MINUTES OF SETTLEMENT
WHEREAS KMT Bissness Inc. o/a Marlin Travel Branch 1083 located at 30 Dunham Drive, Alliston, ON L9R 0G, is a travel agent (Registration No. 50018056) registered on December 22, 2009, under the Travel Industry Act, 2002 ("the Act") and Ontario Regulation 26/05 made under the Act (the “Regulation”);
AND WHEREAS the Registrar issued the Notice of Proposal to Revoke Registration of KMT Bissness Inc. o/a Marlin Travel Branch 1083 on November 21, 2014 (“NOP”), for the reason KMT Bissness Inc. o/a Marlin Travel Branch 1083 is and has been carrying on activities that are in contravention of the Act and the Regulation;
AND WHEREAS KMT Bissness Inc. o/a Marlin Travel Branch 1083 appealed the NOP to the Licence Appeal Tribunal;
AND WHEREAS the NOP was issued for a failure of the KMT Bissness Inc. o/a Marlin Travel Branch 1083 to file financial statements, as required by section 22 of the Regulation, to maintain minimum working capital as required by section 24 of the Regulation and to maintain proper trust accounting, as required by section 27 of the Regulation.
AND WHEREAS the parties agreed to settle all of the issues outstanding in the appeal on the following terms and conditions:
The parties consent to an Order of the Licence Appeal Tribunal incorporating the terms of these Minutes of Settlement and disposing of these proceedings without a hearing.
The Registrant accepts the allegations stated in the NOP as proven and undertakes the following steps to resolve the issues outlined in the NOP.
The Registrant must maintain its trust account in accordance with the Act and the Regulation and Trust Accounting Guidelines.
The Registrant shall submit to TICO its monthly trust reconciliation (a reconciliation showing total outstanding receipts from customers for the related travel services compared to trust funds held in the Trust Account) for the months of March through to and including May, 2015, or until such other time as the Registrar indicates. The Trust Reconciliations shall comply with the following requirements:
a. Each Trust Reconciliation is to be submitted within 30 days from the end of the each month. For example, the Trust Reconciliation for March 2015 is due April 30, 2015;
b. Each Trust Reconciliation shall include a list of consumer deposits on hand and a listing by customer name/Invoice number, date paid and amount in relation to any partial supplier payment related to the moneys received form consumers, if applicable.
c. The Trust Reconciliation shall include a copy of the Travel Industry Act Trust bank account statement for the particular month.
- In order to comply with the minimum working capital requirement, the Registrant must submit to TICO, no later than April 10, 2015, the following:
a. A copy of the visa card or visa statement showing the name of the cardholder who made the shareholder advance of $8,500 on March 18, 2015;
b. A copy of the $4,678 personal cheque deposited on February 13, 2015. If the funds advanced are not those of the shareholder, the Registrant must provide a written note/letter from that lender confirming the terms of the loan.
Within a few months from signing of these Minutes of Settlement, a TICO Inspector will contact the Registrant to schedule an inspection of the Registrant`s books and records. The purpose of the inspection is to ensure that the working capital correction remains in place and has not been removed by the shareholder.
In order to comply with the requirement of section 15 of the Regulation with respect to the Manager/Supervisor, the Registrant must, no later than April 10, 2015:
a. Submit a Certificate of successful completion of the TICO Manager/Supervisor Exam, once Mr. Anthony Biss, the proposed Manager/Supervisor of the Registrant, receives such a Certificate.
b. Provide a copy of Mr. Anthony Biss` valid government issued ID, criminal check, and resume.
In order to improve financial literacy of the director/shareholder of the Registrant, it is strongly suggested that they register for and attend at TICO Accounting Seminar. To inquire about the dates and register, please contact Sanja Skrbic at sskrbic@tico.ca
The Registrant shall file any and all annual financial statements for each fiscal year prepared by a public accountant licensed under the Public Accountancy Act, 2004 and accompanied by a Review Engagement Report or an Audit Opinion as required by the Regulation within 3 months after the end of the fiscal year.
Each and every annual financial statement filed with TICO shall disclose the trust position at the end of the year. The statement with respect to the trust position shall include the balance in the Travel Industry Act Trust Account at the year end, customer deposits, plus any other balances that are included in the trust position. If the customer deposits are nil at the year end, then it must be stated as such.
The Registrant shall respond to TICO inquiries and requests within a reasonable time.
The Registrant shall advise TICO of changes outlined in sections 16 and 17 of the Regulation within the time prescribed in those sections.
The Registrant shall, at all times, maintain the minimum working capital as required by section 24 of the Regulation. If based on the financial statements submitted by the Registrant, the Registrar concludes that the working capital of the Registrant is not in compliance with s. 24 of the Regulation, the Registrant shall take the necessary steps to correct its working capital position and submit proof thereof within 30 days from the request by the Registrar.
The shareholders of the Registrant shall ensure that loans and/or advances to KMT Bissness Inc. o/a Marlin Travel Branch 1083 will not be withdrawn until such time as it can be done without reducing working capital below the minimum amount required by the Act and the Regulation.
In the event KMT Bissness Inc. o/a Marlin Travel Branch 1083 decides to discontinue operations, any claims against the Ontario Travel Industry Compensation Fund are to be fully satisfied before shareholder loans can be repaid.
KMT Bissness Inc. o/a Marlin Travel Branch 1083 and the undersigned, acknowledge that we have read, understand and will comply with the terms of these Minutes of Settlement.
KMT Bissness Inc. o/a Marlin Travel Branch 1083 further acknowledges that it has obtained or has had full opportunity to obtain independent legal advice with respect to the terms of these Minutes of Settlement and their legal effect and impact and further undertakes to comply with them.
SIGNED THIS DAY OF , 2015
Mr. Marc Biss, President
Mr. Richard Smart
KMT Bissness Inc. o/a Marlin Travel Branch 1083 I have the authority to bind the corporation
Registrar, Travel Industry Act, 2002